Robo-Advisers: How should you evaluate them?

This week’s article focuses on how you, the investing public, should evaluate a robo-adviser to determine whether it meets your needs. Robo- Advisers are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. Essentially, this involves a computer programmer creating software that provides investment advice to the clients of a financial services firm, based on parameters that are tied to their investment strategy. It offers the convenience of being able to access financial advice from your smartphone or computer. 

Robo-Advisers have had a global presence since 2008. In Trinidad and Tobago, there have been platforms in existence since October 2019. According to Statista1, assets under management in the robo-advisors segment within the United States, are projected to reach US$937 billion in 2021 and are projected to be US$1.9 trillion by 2025. No specific guidelines for robo-advisers exist locally, however the provisions for investment advisers within the Securities Act (as amended) 2012, provide the basis for regulating potential market entrants which provides a foundation for a regulatory framework. 

Any potential entrant will be subject to the same registration and

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